Rossari Biotech Ltd (BOM:543213) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst ...

• Revenue: Increased by 3% to INR498.4 crore.

• HPPC Division Revenue: Grew by 6% to INR390 crore.

• Textile Specialty Chemicals Division Revenue: Decreased to INR84 crore from INR96 crore.

• Animal Health and Nutrition (AHN) Division Revenue: Stable at INR24 crore, up from INR20 crore.

• Exports Growth: Increased by 21% year-over-year; 32% growth in H1 FY'25.

• EBITDA: Increased by 3.6% to INR65.9 crore with a margin of 13.2%.

• Net Profit: Rose by 7.3% to INR35.3 crore.

• Gross Margin: Improved by 253 basis points.

• Revenue Contribution: HPPC 78%, Textile Specialty 17%, AHN 5%.

• Domestic vs. Export Sales: Exports constitute 25% of overall sales.

• Warning! GuruFocus has detected 6 Warning Signs with BOM:543213.

Release Date: October 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Rossari Biotech Ltd (BOM:543213) reported a steady quarter with a 3% increase in revenues to INR498.4 crore.

• The HPPC division showed a year-over-year growth of 6%, with revenues reaching INR390 crore.

• Exports grew by 32% in H1 FY'25, significantly supporting overall performance despite softer domestic growth.

• The company has made strategic investments, including the establishment of Rossari Biotech Trading FZE in the UAE and the acquisition of Unistar Thai Company Limited.

• Rossari Biotech Ltd (BOM:543213) is focusing on sustainability, having installed solar capacity, reduced water consumption, and implemented waste management initiatives.

• The textile specialty chemicals division faced headwinds, with revenues declining from INR96 crore to INR84 crore.

• Domestic sales remained flat, with the HPPC division experiencing softer growth due to flat FMCG home care volumes and pricing pressures.

• The company faced challenges in the Bangladesh and Egypt markets, impacting textile exports.

• Increased freight costs and professional expenses have impacted margins, despite improvements in gross profit.

• The animal health and nutrition business did not meet expected growth targets, with strategic shifts impacting revenue.

Q: Can you provide the quarterly export numbers for Q1 and Q2, and compare them with last year? Also, what has been weak on the domestic side? A: Exports for this quarter were about INR130 crores, and in Q1, they were INR118 crores. Last year, Q2 exports were INR107 crores. On the domestic front, the FMCG Home care volumes were flat, and with raw material prices coming down, there was pressure on pricing. The textile side saw better volumes than last year, but pricing pressures persisted.